Yak Gold-Silver Project Optioned to New Partner

RNS Number : 3292Q

Cloudbreak Discovery PLC

27 October 2021

 

27 October 2021

Cloudbreak Discovery Plc

("Cloudbreak" or the "Company")

Yak Gold-Silver Project Optioned to New Partner

Cloudbreak Discovery Plc (LSE: CDL), a natural r esource project generator, is pleased to announce that it has entered into an agreement with Moonbound Mining Ltd. ("Moonbound"), in respect of the Yak Project (the "Project"), in northwestern British Columbia, for gold mineralisation.

Highlights:

· Moonbound will issue Cloudbreak 2,700,000 common shares and make aggregate cash payments to Cloudbreak of CAD $145,000 over a three-year period

· Under the terms of the agreement, Moonbound is committed to spend up to CAD $700,000 in exploration expenditure on the property, with at least CAD $150,000 to be spent prior to the second anniversary of Moonbound listing on an exchange.  As a condition of the agreement, Moonbound is obliged to enter into a public transaction within six months of the effective date of the agreement with Cloudbreak

· Upon completion of these option agreement obligations, Cloudbreak will transfer 100% interest in the property to Moonbound

· Cloudbreak will retain a 2% net smelter royalty which is subject to a buy down provision where Moonbound may, at its discretion, repurchase half of the royalty for CAD $1,500,000

The Project targets gold mineralisation in northwestern British Columbia, covering an area of 4,020 hectares

· The geological setting is favourable for low-sulphidation epithermal gold-silver veins and mesothermal lode gold

· An analogous target in the region is Whitehorse Gold Corp's Skumkum Gold Project

Kyler Hardy, CEO of Cloudbreak Discovery, commented, "Our partnership with Moonbound represents a formalisation of longstanding relationships with the Cloudbreak team and we are looking forward to the collaboration as much as the exploration itself. The rocks in this area continue to yield new and exciting mineralisation. We are optimistic that the application of modern exploration techniques, coupled with the expertise across both teams, will bring the best chance of success at this Project."

Further Information

The Project is located 80 kilometres south of Whitehorse, Yukon Territory, immediately south of the Yukon border and east of the Alaskan border in northwestern British Columbia, covering an area of 4,020 hectares. The Project was staked based on historic surface mineral occurrences, regional geology and remote sensing data indicating new exposures from glacial recession. Cloudbreak has recently completed a regional targeting compilation and Yak is one of the key pieces of ground identified in this initiative.

The Yak Project is underlain by the southern margin of the Bennet Lake Caldera, with an eroded structural dome and thick successions of pyroclastic and epiclastic Eocene age, Skukum group volcanic rocks. Cretaceous coast plutonic suite granodiorites and quartz monzonites are noted in the area as well. The geological setting is favourable for low-sulphidation epithermal gold-silver veins and mesothermal lode gold.

Mineralisation observed on the property to date consists of multiple quartz veins of varying widths between 0.5 metres and five metres, containing galena, sphalerite and chalcopyrite.

An analogous target is the Skukum Gold Project which appears to contain both styles of mineralisation and has:

· The Skukum Creek Deposit contains an Indicated Resource of one million tonnes at 5.85 grammes per tonne of gold and 166.4 grammes per tonne of silver (gold equivalent of 7.75 grammes per tonne)¹ and an Inferred Resource of 537,000 tonnes at 4.99 grammes per tonne of gold and 108.3 grammes per tonne of silver (gold equivalent of 6.22 of grammes per tonne)¹

· Additionally, the Goddell deposit contains an Indicated Resource of 329,700 tonnes at 8.13 grammes per tonne of gold and an Inferred Resource of 483,900 tonnes at 7.13 grammes per tonne gold¹

Qualified Person

Mr. Rory Kutluoglu P. Geo., Chief Operation Officer of the Company, is the Qualified Person ("QP") under NI 43-101 for the technical information in this news release, has verified the data disclosed and approves the technical contents contained in this news release.

- Ends -

For additional information please contact:

Cloudbreak Discovery PLC	Tel: [phone]
	Kyler Hardy, CEO	[e-mail]
	Henrik Mikkelsen, VP Corporate Development	[e-mail]
Novum Securities Financial Adviser and Broker	Tel: [phone]
	David Coffman / Lucy Bowden Colin Rowbury
Blytheweigh (Financial PR/IR-London)	Tel: [phone]	[e-mail]
	Tim Blythe
	Megan Ray
Stellium Services (Investor Relations)	Tel: [phone]	[e-mail]
www.StelliumServices.com	Andrew Wilson
	Claire Bowden

About Cloudbreak

Cloudbreak Discovery PLC is a leading natural resource project generator, working across a wide array of mineral assets that are being developed and managed by an experienced team with a proven track record. Value accretion within the projects being developed by Cloudbreak's generative model enables a multi asset approach to investing. Diversification within the mining sector and amongst resource classes is key to withstanding the cycles of natural resource investing. 

Footnotes

1.  "Skukum Gold-Silver Project, NI 43-101 Technical Report, Whitehorse Mining District, Yukon Territory, Canada" dated effective October 1, 2020 and authored by Ronald G. Simpson, P.Geo.

 

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